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To: Bucky Katt who wrote (7796)2/5/2001 3:57:52 PM
From: Jibacoa  Respond to of 13094
 
<<story about banks being more restrictive>>

William:

Some of the banks have stated they will restrict loans to the people that don't send other higher margin business to them.

For instance, the WSJ had a recent article about BAC not going to lend money to Tyson on their merge with IBP because they were not given BAC some of their "investment manager" business and other banks stated they were implanting similar policies.

Congrats on your results on the rat movers thread. I have been lurking over there and your results have been very good.

Bernard



To: Bucky Katt who wrote (7796)2/6/2001 10:35:13 AM
From: James Strauss  Read Replies (1) | Respond to of 13094
 
Good going William...

There's money in them there Rats... : >

As for the banks tightening credit standards... This excerpt from the article says it all:

""``The most important reasons for tightening standards and terms were a worsening
economic outlook and a reduced tolerance for risk,'' the report said. A ``substantial
fraction'' of banks surveyed ``reported weaker demand over the past three months for
business and commercial real estate loans.""


They are also being more cautious with Real Estate loans... We don't need a repeat of the 1980's Resolution Trust situation...

Jim